Founded in 1972, the First Royal Factor in Fang was formed from His Majesty King Bhumibol Adulyadej’s initiative to alleviate the poverty among farmers due to unfair purchases imposed by middlemen. At the beginning, the first Royal Factory Fang, Chiang Mai was modified from a car to a portable factory purchasing products from farmers at fair price. Later, a building of School for Border Patrol Police was used as a temporary factory before constructing the first food processing plant at Rom Klao market and Mae Ngon Derm Cooperatives Office. After the completion of the construction, the administration divided the organization into three main departments including, food and product preserving operation, quality control and maintenance.

After the massive landslide incident, The Crown Bureau Property, as a major shareholder of Doi Kham Food Products Co. Ltd., had laid down a plan to restore the First Royal Factory Fang, Chiang Mai into four parts, production and restoration, learning and development, business supporting and museum and exhibition.

The first Royal Factory Fang, Chiang Mai is operated in the form of rural development, starting from developing the community. Secondary health center and children nutrition center were established to protect and promote hygiene and good health. This reflects His Majesty King Bhumibol Adulyadej’s concept in giving support to people living in the northern high plain.

The first Royal Factory Fang, Chiang Mai faced two major disasters, in 1972 and 2006. The first incident occurred in November 13-15 with a major flood and a massive landslide on October 8-11, 2006. The second incident caused major loss to the factory and its surrounding area covering over 15 villages. Shortage of foods and water became a major problem in the area. The first Royal Factory Fang, Chiang Mai, as the only factory in the area, manufactured Doi Kham drinking water for the people in the area. Consequently, the drinking water became an outset of Doi Kham until today